imagine Your Inno-IP magazine August 2010
efficiency in the business strategy the
Global Innovation Network
companies are trying to disintegrate their
R&D functions worldwide, which has
prompted the formulation of global
The emergence of global innovation network is a new innovation networks.
approach adopted at the organizational level to
manage the company wide research and development
The availability of high-quality work force,
programs. The traditional model of innovation
presence of pro-active IP enforcement laws,
comprising of an ad-hoc structure and centralized
best combination of cost & quality in certain
R&D wing is gradually being replaced by a network of
geographic locations have prompted the
extranet partners and offshore sites which could be
global service/product giants to outsource
collectively termed as a global Innovation network.
their R&D activities or establish off-shore
development centers in such locations.
The reasons for such a transformation in the R&D
strategy could be attributed to
The companies have identified that the
The huge investments that the companies are
process of R&D outsourcing & off-shoring
forced to make to be innovative
can be used to reduce the time-to-market and
The complexity embodied in the process of provide for value maximization.
A sharp increase in the demand for The companies in order to be innovative
products/services that could cater the needs have adopted the strategy of letting the idea
of local population flow out of the place of origination and being
The rapid growth & substantial availability of handled in various geographic locations, so
expertise in certain developing countries i.e. that there could be versatility in the manner
China, India… in which the ideas would be materialized.
The key trends and attitudes that symbolize the The process of idea outsourcing & off-
formulation of a global innovation network are shoring has also streamlined the process of
idea transformation, has also brought down
The customer demand for customized & the cost involved in the innovation process,
innovative products has increased and has succeeded in making the process of
exponentially over the past few years, innovation an inexpensive, flexible and value
prompting the service providers to adopt adding expedition.
newer policies of innovation, in spite of such
an adoption being a costly affair. To sustain The companies in response to the above
the ever-changing market demand trends the mentioned trends, attitudes have started drifting
organizations are being forced to adopt a away from the standard R&D practices which
strategy that is customer-centric and efficient involved setting up and collaboration with an in-
than the existing one. To bring about house R&D department to a distribution of